Fricker's financial records reveal this information at 31 December 2014. $$\begin{array} { l c }
\text { Net Sales for } 2014 & \$ 90000 \
\text { Cost of Sales for } 2014 & 60000 \
\text { Ending Inv entory } & 12500 \
\text { B eginning Inventory } & 17500
\end{array}$$ The number of days taken to turn over average inventory for 2014 is:

Question

Fricker's financial records reveal this information at 31 December 2014. $$\begin{array} { l c } 
\text { Net Sales for } 2014 & \$ 90000 \
\text { Cost of Sales for } 2014 & 60000 \
\text { Ending Inv entory } & 12500 \
\text { B eginning Inventory } & 17500
\end{array}$$ The number of days taken to turn over average inventory for 2014 is:

Quizplus · Accepted Answer

The average inventory is (12500+17500)/2 = 15000. The cost of sales is 60000. The number of days taken to turn over average inventory is 365 * 15000/60000 = 91 days.

Fricker's Financial Records Reveal This Information at 31 December 2014